Chris Martenson: Four Signs That We’re Back in Dangerous Bubble Territory

May 23, 2013 By 16 Comments

As the global equity and bond markets grind ever higher, abundant signs exist that we are once again living through an asset bubble – or rather a whole series of bubbles in a variety of markets. This makes this period quite interesting, but also quite dangerous.
With equity and bond markets at or near all-time record highs, with all financial assets consistently shrugging off bad – or worse – news as the riskiest of assets continue to find consistent upward bids, we find ourselves in familiar and bubbly territory.
I can summarize my thoughts in one sentence:  How could this be happening again so soon?

In times past, it took one or more generations between bubbles for people to financially recover and forget the painful lessons before they would consider doing it all again. Yet here we are, working our way through our third set of bubbles in less than two decades, which must be some sort of world record. [Read more...]

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Sprott Is Bullish on Silver—and Gold—Equities

May 23, 2013 By 14 Comments

Sprott Silver Equities Class Co-Manager Maria Smirnova understands the power of leverage. She has seen the big impact even a slight increase in the silver price can have on silver producers. Every cent is multiplied and goes right to the investor’s bottom line, giving the equities more upside than possible in a coin. That is why Eric Sprott increased holdings of silver equities in certain Sprott funds. Smirnova discusses five of these companies in this interview with The Gold Report. [Read more...]

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SRSRocco Responds to Martin Armstrong’s “Silver — the Flash Crash”

May 23, 2013 By 39 Comments

Martin Armstrong stated in his blog Post that the reason for the “flash crash” in silver Sunday night, May 19, was due to the lack of bids.  He goes on further to say  “Despite the gold/silver promoters, there is no expansion of buyers for the precious metals. It has been the same choir over and over again.”
While I have a lot of respect for Martin Armstrong’s work on his pi-cycles,  it amazes me when he makes a comment such as this.  Of course there were a lack of bids during one of the most thinly traded times of the day — it goes without saying.

The flash crash wasn’t due to silver fundamentals, rather it was due to garbage trading of fiat currencies taking place in the Forex markets. [Read more...]

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Gold Could See Short Squeeze As Stocks Globally Fall After Nikkei Crashes 7.3%

May 23, 2013 By 10 Comments
Gold is oversold on a host of benchmarks and was due a bounce and the Nikkei plummet and stock weakness in Europe, the FTSE is down by 1.9% and the CAC and DAX by more than 2.4%, have led to gold buying.
There was short covering action yesterday and we expect more short covering however the scale of the losses in Japan overnight and risks of sharp falls in European and U.S. markets mean that in the short term, gold may be vulnerable.There remains the risk of a massive short squeeze in the gold market as speculators such as Wall Street banks and hedge funds have made “the biggest bet ever against gold prices.”
This is likely to propel gold higher recovering much of the losses in recent months. It is likely to do so as the shorts are trend following speculators who are again completely ignoring the very positive gold fundamentals with massive demand for physical and rising premiums globally. [Read more...]
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William Black: Obama Using IRS As A Weapon is Everybody’s Fear

May 23, 2013 By 12 Comments

Professor and former bank regulator William Black is an expert in white collar crime.  When it comes to the IRS scandal, Dr. Black says, “This is everybody’s fear.  This is a real fear and not made up.  You can produce incredible abuses of democracy if you use the IRS as a weapon.”  Dr. Black contends, “It was precisely First Amendment activities that the IRS targeted under the Obama Administration.  At best, they were completely asleep at the wheel.”  Dr. Black isn’t sure higher-ups are going to jail but says, “The clear unbelievable thing is they gave an absolute gift, Christmas came early, for not only the Republicans, but for all Tea Party groups.”  Black goes on to say, “This administration, very early on, became an enemy of disclosure.  It hates whistleblowers with a passion.”  Join Greg Hunter as he goes One-on-One with former bank regulator William Black. [Read more...]

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Jim Sinclair: Take Delivery & End the Slavery of Real Gold to False Paper!

May 23, 2013 By 19 Comments

jim sinclairJim Sinclair sent an email alert to subscribers Wednesday night urging PM investors to stop speculating in the paper markets, and to take physical delivery of their gold bullion:
Paper Gold must cease to function. Manipulation without even a concern to conceal is no longer acceptable. Gold bullion must be emancipated from no gold paper gold. The key to the emancipation of physical gold from paper gold is the warehouse supply held primarily by the COMEX.
Take delivery and end the slavery of real gold to false paper by bringing it to a screeching halt.
Force the exchanges to change their delivery contract to cash. Physical gold demands FREEDOM. Stop speculating in paper gold as it only hinders physical.

Sinclair’s full alert is below:
 [Read more...]

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America’s Bubble Economy Is Going To Become An Economic Black Hole

May 22, 2013 By 21 Comments

What is going to happen when the greatest economic bubble in the history of the world pops?  The mainstream media never talks about that.  They are much too busy covering the latest dogfights in Washington and what Justin Bieber has been up to.  And most Americans seem to think that if the Dow keeps setting new all-time highs that everything must be okay.  Sadly, that is not the case at all.  Right now, the U.S. economy is exhibiting all of the classic symptoms of a bubble economy.  You can see this when you step back and take a longer-term view of things.  Over the past decade, we have added more than 10 trillion dollars to the national debt.  But most Americans have shown very little concern as the balance on our national credit card has soared from 6 trillion dollars to nearly 17 trillion dollars.  Meanwhile, Wall Street has been transformed into the biggest casino on the planet, and much of the new money that the Federal Reserve has been recklessly printing up has gone into stocks.  But the Dow does not keep setting new records because the underlying economic fundamentals are good.  Rather, the reckless euphoria that we are seeing in the financial markets right now reminds me very much of 1929.  Margin debt is absolutely soaring, and every time that happens a crash rapidly follows.  But this time when a crash happens it could very well be unlike anything that we have ever seen before.
The top 25 U.S. banks have more than 212 trillion dollars of exposure to derivatives combined, and when that house of cards comes crashing down there is no way that anyone will be able to prop it back up.  [Read more...]

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Rob Kirby Takes The Gloves Off On Silver Manipulation: JPMorgan IS the Gov’t!

May 22, 2013 By 17 Comments

ESFRob Kirby and Andy Hoffman join Elijah Johnson for a MUST LISTEN interview on Sunday’s silver smash, which saw 10% shaved off the silver futures price in only 4 minutes in a massive waterfall raid taking the metal to $20.30. 
Kirby had this to say about the raid:

The take-down in precious metals is a contrivance, and it reeks and absolutely stinks of desperation on the part of the protectors of the world’s reserve currency, and that would be the US Treasury in cahoots with the Federal Reserve.
I want to take the gloves off here.  Let’s just get this right up on the table.  JP Morgan’s positions aren’t JP Morgan’s positions.
JP Morgan’s positions are the positions of the exchange stabilization fund, which is a branch of the US Treasury.  When the US Treasury intervenes in the markets, they do so through the trading desk of the NY Fed, and their positions are executed by the NY Fed, who farm the trades out to the big derivatives banks.  In that context, JP Morgan is the Federal Reserve.  They are one and the same!

Rob Kirby along with Andy Hoffman’s MUST LISTEN interview on silver manipulation is below: [Read more...]

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Ted Butler: Blockbuster in Gold as JP Morgan Likely Acquired 10 M oz of Gold Liquidated by GLD

May 22, 2013 By 27 Comments

Bernanke-Dimon-Fed-TunnelOne of the key considerations in gold has been the redemption of more than 10 million ounces (over $15 billion) since year end from the world’s largest gold Exchange Traded Fund, GLD.    I believe that the big buyer of the 10 million ounces of gold liquidated in the GLD was JPMorgan, either alone or with other collusive commercial banks.
I’m not suggesting that JPMorgan did anything wrong by intentionally evading SEC reporting requirements.  That potential infraction pales in comparison to the real crime.  In this crime (actually more egregious in silver than in gold) the crooked bank manipulated gold prices lower, via the usual COMEX price-fixing mechanics, to induce GLD shareholders to sell. This was a planned and executed operation that left no stone unturned.
It appears to me that JPMorgan and their ilk have bought absolutely massive quantities of gold and silver in many different markets.  Unfortunately, much of that buying has come as a result of the deliberate and successful manipulation of price in order to force others to sell.  I don’t believe that is fair or even legal.  Nevertheless the bloodless verdict of the market suggests we are going a lot higher at some point soon. [Read more...]

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Nigel Farage on 12% Tax Rate for Members of EU Parliament: It is Tax Fraud on a Massive Scale!

May 22, 2013 By 17 Comments

farageThe European Parliament met Tuesday to discuss the issue of tax evasion throughout the UK and the Eurozone, and how the European Parliament might clamp down on those attempting to protect their well earned wealth from government confiscation.
All was going according to plan, until UKIP member Nigel Farage was given the floor. 
Farage immediately launched into a classic rant against Barroso and the rest of the EU bureaucrats, stating that it is not the average man on the street that is engaging in tax fraud, but the European Parliament members themselves:
If we look at the EU officials who work for the European Commission and the European Parliament, the highest category [the most common grade is AD12] are people that earn a net take home pay of just over 100 thousand pounds a year.  And yet under EU rules they pay tax of 12 per cent. It is tax fraud on an absolutely massive scale.

Farage’s epic and spot-on rant is below: [Read more...]

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Was Sunday’s Epic Silver Smash a Cartel Signal?

May 22, 2013 By 25 Comments

cartelBy Eric Dubin

Signalling happens.  Sunday’s smash was more of a standalone attack first and foremost, and then perhaps as a signal.  It was officially reported as having been executed by a single trader (as Reuters reported), presumably JPM.  Naturally, they hopped it would inspire (signal) still further short selling by hedge funds and momentum players that cartel has suckered to join the party since the low $30s in silver.

Sunday’s smash was both a price signal and a direct action in that sense, but it was unlike other, better examples of signalling.  For example, it’s common to see mining equities come under significant pressure for no apparent reason, while gold and silver are just moving sideways.  The very next day, the metals are attacked.  It’s not always easy to say each instance of this pattern is a signal and part of a cartel game plan. 
But this pattern has happened so frequently as to be statistically not probable in a free and fair market and the behavior is suspect.   [Read more...]

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Bernanke: “No Tapering”, Silver Smashed, then Crashed

May 22, 2013 By 15 Comments

Moments ago Bernanke confirmed what SD readers were well aware of- the Fed’s media propaganda over the past 2 months that QE will be tapered off over the 2nd half of 2013 was just that- pure MOPE Propaganda. 
Bernanke confirmed that QE will continue to Infinity…AND BEYOND!!! stating that premature tightening risks slowing or ending the recovery.

Silver instantly popped .70 higher on the news…and was promptly smashed back to $22.40! [Read more...]

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Stewart Thomson: Buy Gold On QE Exit News

May 22, 2013 By 1 Comment

The timeless market adage, “Buy the rumour, and sell the news!” may be something to carefully ponder, at this point in time.
Here’s why: A lot of the anticipation for a reduction in QE may already be factored into the current gold price.
The question you may need to ask yourself is, have the bears dropped the ball, by overplaying their QE reduction card?
There is also a classic double bottom forming in gold, and I’m sure that many technical analysts at the major banks may soon begin talking about it, in their daily commentary to investors.  For this double bottom pattern to “activate”, gold must trade at $1490, but if it does, the technical target is…. $1680!
There are probably very few gold investors who believe such a move is even possible, let alone likely, but markets have an odd habit of doing what is least expected. [Read more...]

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Asian Gold Premiums Hit New Highs as Europe Urged to Start “Agressive QE”

May 22, 2013 By 2 Comments

Asked yesterday on Bloomberg TV whether the Fed will start to cut its $85 billion program of monthly quantitative easing, New York Fed president William Dudley said “It really depends on how the economic outlook evolves…It’s too soon to make that determination.”
Even if the US central bank does slow its purchases of government debt and mortgage bonds with newly created money, Dudley said the Fed would only be “adding less stimulus” rather than actually “tightening” monetary policy.

Dudley’s colleague James Bullard, president of the St. Louis Fed, meantime warned Europe yesterday that it needs to start quantitative easing to avoid a long, Japan-style depression.   “You should worry about it, and then take policy action to avoid it,” said Bullard. “One way to get stuck would be to be passive in this situation and not take some aggressive action to try to get inflation back.”
“Europe can draw lessons from Japan on the dangers of half measures.” agreed new Bank of England governor Mark Carney.

[Read more...]

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Waking Up to $4,000/oz Gold…And Nothing Offered

May 21, 2013 By 23 Comments

bill holter“We will go to bed with Gold at $1,500 and wake up with it $4,000 bid…and nothing offered“- Reg Howe
This quote by Mr. Howe sounds crazy.  It sounds impossible and sounds like the rantings of a raving lunatic right?  Well, no it doesn’t.  Actually, I believe that something resembling this will not only happen but has to happen.  Logically, mathematically and just pure structurally an event very similar is locked, loaded ready for the trigger to be pulled. [Read more...]

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